	English [member]
Start Date	2020-01-01	2019-01-01
End Date	2020-03-31	2019-03-31
Filing information [line items]
Disclosure of entity information [abstract]
Name of reporting entity	Amana Cooperative Insurance Co.
Company symbol code\| ISIN code	8310 \| SA12HG541R18
Sector\| Industry group	Financials \| Insurance
Disclosure of document information [abstract]
Whether entity wants to report opening statement of financial position	No
Period covered by financial statements	Quarter 1
Reporting period start date	2020-01-01	2019-01-01
Reporting period end date	2020-03-31	2019-03-31
Description of nature of financial statements	Consolidated
Status of financial statements	Reviewed
Description of presentation currency	Saudi Arabia, Riyals
Level of rounding used in financial statements	Thousands

	Primary auditor [member]	Second primary auditor [member]
	English [member]	English [member]
Start Date	2020-01-01	2020-01-01
End Date	2020-03-31	2020-03-31
Auditors information [line items]
Details of auditors signing report [abstract]
Name of auditor signing report	Ibrahim A. Al- Bassam Certified Public Accountant License No. 337	Abdullah M. Al Basri Certified Public Accountant License No. 171
Registration number of auditor	337	171
Details of audit firm [abstract]
Name of audit firm	Al-Bassam & Co P.O. Box 69658 Riyadh 11557 Kingdom of Saudi Arabia	Aldar Audit Bureau Abdullah Al Basri & Co. Riyadh 11451 Kingdom of Saudi Arabia
Registration number of audit firm	337	171
Contact number of audit firm	567164899	557836297
Address of audit firm	Al-Bassam & Co P.O. Box 69658 Riyadh 11557 Kingdom of Saudi Arabia	Aldar Audit Bureau Abdullah Al Basri & Co. Riyadh 11451 Kingdom of Saudi Arabia

	English [member]
Start Date	2020-01-01
End Date	2020-03-31
Auditors report [line items]
Disclosures of auditors report [text block]	INTRODUCTION We have reviewed the accompanying interim condensed statement of financial position of Amana Cooperative Insurance Company (A Saudi Joint Stock Company) (the “Company”) as of 31 March 2020 and the related interim condensed statements of income, comprehensive income, cash flows and changes in equity for the three month period then ended and other explanatory notes (the “interim condensed financial information”). Management is responsible for the preparation and presentation of this interim condensed financial information in accordance with International Accounting Standard 34 - “Interim Financial Reporting” (“IAS 34”) that is endorsed in the Kingdom of Saudi Arabia. Our responsibility is to express a conclusion on this interim condensed financial information based on our review.
Contents of auditors report [abstract]
Nature of auditors opinion	Unmodified opinion
Auditors opinion	Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed financial information is not prepared, in all material respects, in accordance with IAS 34, as endorsed in the Kingdom of Saudi Arabia.
Basis of opinion	SCOPE OF REVIEW We conducted our review in accordance with International Standard on Review Engagement (“ISRE”) 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity”, as endorsed in the Kingdom of Saudi Arabia. A review of interim condensed financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (ISAs), as endorsed in the Kingdom of Saudi Arabia and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Date of signing audit report by auditor	2020-06-11

Start Date	2020-01-01	2019-01-01	2019-01-01
End Date	2020-03-31	2019-12-31	2019-03-31
Statement of financial position [abstract]
Assets [abstract]
Insurance/ takaful operations assets [abstract]
Property and equipment, net, insurance/ takaful operations assets	6,561	6,486	3,604
Deferred policy acquisition costs	12,624	8,328	10,115
Reinsurers/ retakaful share of unearned premiums/ contributions	4,629	4,866	10,084
Prepayments and other assets, insurance/ takaful operations assets	21,722	17,337	17,133
Due from shareholders operations	100,298	111,315	128,778
Premiums/ insurance receivables/takaful contributions receivable, net	138,283	79,559	47,636
Reinsurers/ retakaful share of outstanding claims/ benefits, net	19,314	19,390	31,633
Available-for-sale investments, insurance/ takaful operations assets	1,923	1,923	1,923
Cash and cash equivalents, insurance/ takaful operations assets	21,593	21,230	18,749
Other assets, insurance/ takaful operations assets	500		24,894
Total insurance/ takaful operations assets	327,447	270,434	294,549
Shareholders assets [abstract]
Investments held-to-maturity, shareholders assets	48,741	48,640	48,336
Statutory deposit	36,000	36,000	21,000
Prepayments and other assets, shareholders assets	2,363	2,698	16,392
Time (Murabaha) deposits, shareholders assets	147,367	145,993	113,068
Accrued investment income	2,744	2,577	2,066
Available-for-sale investments, shareholders assets	15,212	17,375	9,806
Cash and cash equivalents, shareholders assets	13,908	23,285	106,477
Total shareholders assets	266,335	276,568	317,145
Total assets	593,782	547,002	611,694
Liabilities and equity [abstract]
Insurance/ takaful operations liabilities and surplus (deficit) [abstract]
Insurance/ takaful operations liabilities [abstract]
Gross unearned premiums/ contributions	141,230	100,911	116,075
Unearned commission income	1,149	1,057	893
Employees end of service benefits, insurance/ takaful operations liabilities	4,105	4,043	3,277
Surplus distribution payable	898	779	779
Reinsurers/ retakaful balance payable	8,230	12,976	9,790
Gross outstanding claims/ benefits including IBNR payable	83,789	79,830	82,701
Other technical reserves	26,440	26,360	25,595
Accrued expenses payable, insurance/ takaful operations liabilities	61,814	44,774	59,286
Other liabilities, insurance/ takaful operations	331	-296
Total insurance/ takaful operations liabilities	327,986	270,434	298,396
Insurance/ takaful operations surplus (deficit) [abstract]
Surplus (deficit) from insurance/ takaful fund	0	0	0
Total insurance/ takaful operations surplus (deficit)	0	0	0
Total insurance/ takaful operations liabilities and surplus (deficit)	327,986	270,434	298,396
Shareholders liabilities and equity [abstract]
Shareholders liabilities [abstract]
Zakat payable	3,112	2,859	9,611
Due to insurance/ takaful operations	100,298	111,315	128,778
Accrued expenses payable, shareholders liabilities	2,736	2,423	1,881
Other liabilities, shareholders liabilities	2,744	2,577	2,066
Total shareholders liabilities	108,890	119,174	142,336
Shareholders equity [abstract]
Equity attributable to owners of parent [abstract]
Share capital	240,000	240,000	240,000
Fair value reserve on investments, shareholders equity	897	3,060	257
Retained earnings (accumulated losses)	-83,452	-85,666	-69,295
Other reserves	-539
Total equity attributable to owners of parent	156,906	157,394	170,962
Non-controlling interests	0	0
Total equity attributable to equity holders of company	156,906	157,394	170,962
Total shareholders liabilities and equity	265,796	276,568	313,298
Total insurance/ takaful operations liabilities, surplus (deficit) and shareholders liabilities and equity	593,782	547,002	611,694

Start Date	2020-01-01	2019-01-01
End Date	2020-03-31	2019-03-31
Statement of insurance/ takaful operations [abstract]
Statement of insurance/ takaful operations and accumulated surplus (deficit) [abstract]
Income from insurance/ takaful operations [abstract]
Net premiums/ contributions earned [abstract]
Net premiums/ contributions written [abstract]
Gross premiums/ contributions written	103,397	96,751
Excess of loss expense	2,347	1,350
Reinsurance/ retakaful premiums ceded	3,459	2,301
Net premiums/ contributions written	97,591	93,100
Changes in unearned premiums/ contributions	40,556	57,846
Net premiums/ contributions earned	57,035	35,254
Reinsurance/ retakaful commissions	752	360
Investment income from insurance/ takaful operations, net		31
Fees and other income from insurance/ takaful operations		574
Other non-operating income from insurance/ takaful operations	3,334
Total income from insurance/ takaful operations	61,121	36,219
Cost and expenses [abstract]
Net claims/ benefits incurred [abstract]
Net claims/ benefits paid [abstract]
Gross claims/ benefits paid	49,620	30,608
Reinsurance/ retakaful share of gross claims/ benefits paid	12,946	12,162
Net claims/ benefits paid	36,674	18,446
Changes in outstanding claims/ benefits including IBNR	3,959	11,835
Changes in reinsurance/ retakaful share of outstanding claims/ benefits	76	1,639
Net claims/ benefits incurred	40,709	31,920
Policy acquisition costs	5,702	3,937
General and administrative expenses, insurance/ takaful operations	10,094	11,388
Other underwriting expenses	3,429	10,896
Total cost and expenses	59,934	58,141
Surplus (deficit) for period from insurance/ takaful operations	1,187	-21,922
Shareholders appropriation from insurance/ takaful operations surplus (deficit)	1,068	-21,922
Net result for period from insurance/ takaful operations after shareholders appropriation	119	0
Policyholders share of accumulated surplus, at start of period	-119	0
Policyholders share of accumulated surplus, at end of period	0	0

Start Date	2020-01-01	2019-01-01
End Date	2020-03-31	2019-03-31
Statement of shareholders operations [abstract]
Profit (loss) [abstract]
Income (loss) from continuing operations [abstract]
Shareholders appropriation of surplus (deficit) transferred from insurance/ takaful operations	1,068	-21,922
Revenue [abstract]
Investment income	1,758	1,577
Realised gain (loss) on available-for-sale investments	0	8
Total revenue	1,758	1,585
Expenses [abstract]
General and administrative expenses, shareholders operations	359	444
Total expenses	359	444
Income (loss) from continuing operations before zakat and income tax	2,467	-20,781
Zakat expenses on continuing operations for period	253	95
Profit (loss) from continuing operations	2,214	-20,876
Income (loss) from discontinued operations [abstract]
Income (loss) from discontinued operations	0	0
Profit (loss) from discontinued operations before zakat and income tax	0	0
Zakat expenses on discontinued operations for period		0
Profit (loss) from discontinued operations	0	0
Profit (loss) for the period	2,214	-20,876
Profit (loss), attributable to [abstract]
Profit (loss), attributable to saudi shareholders of company	2,191.4172	-19,972.0692
Profit (loss), attributable to non-saudi shareholders of company	22.5828	-903.9308
Earnings per share [abstract]
Basic earnings (loss) per share [abstract]
Basic earnings (loss) per share from continuing operations	0.09	-1
Total basic earnings (loss) per share	0.09	-1
Diluted earnings (loss) per share [abstract]
Diluted earnings (loss) per share from continuing operations	0	0
Total diluted earnings (loss) per share	0	0
Weighted average number of equity shares outstanding	24000	20941.124

Start Date	2020-01-01	2019-01-01
End Date	2020-03-31	2019-03-31
Statement of other comprehensive income, before tax [abstract]
Net result for period from insurance/ takaful operations after shareholders appropriation	119	0
Other comprehensive income [abstract]
Components of other comprehensive income that will not be reclassified to profit or loss [abstract]
Gains (losses) on revaluation of property and equipment	0	0
Total other comprehensive income that will not be reclassified to profit or loss	0	0
Components of other comprehensive income that will be reclassified to profit or loss [abstract]
Share of other comprehensive income of associates and joint ventures accounted for using equity method that will be reclassified to profit or loss	0	0
Foreign currency translation [abstract]
Gains (losses) on exchange differences on translation of foreign operations	0	0
Total other comprehensive income (loss), foreign currency translation	0	0
Cash flow hedges [abstract]
Gains (losses) on cash flow hedges, net	0	0
Total other comprehensive income (loss), cash flow hedges	0	0
Available-for-sale financial assets [abstract]
Gains (losses) on remeasuring available-for-sale financial assets	0	0
Total other comprehensive income (loss), available-for-sale financial assets	0	0
Hedges of net investment in foreign operations [abstract]
Gains (losses) on hedges of net investments in foreign operations	0	0
Total other comprehensive income (loss), hedges of net investment in foreign operations	0	0
Other comprehensive gains (losses) that will be reclassified to profit or loss	0	0
Total other comprehensive income (loss), that will be reclassified to profit or loss	0	0
Total other comprehensive income (loss)	0	0
Total comprehensive income (loss) for period	119	0

Start Date	2020-01-01	2019-01-01
End Date	2020-03-31	2019-03-31
Statement of other comprehensive income, before tax [abstract]
Statement of comprehensive income [abstract]
Profit (loss) for the period	2,214	-20,876
Other comprehensive income [abstract]
Components of other comprehensive income that will not be reclassified to profit or loss [abstract]
Gains (losses) on revaluation of property, plant and equipment	0	0
Total other comprehensive income that will not be reclassified to profit or loss	0	0
Components of other comprehensive income that will be reclassified to profit or loss [abstract]
Share of other comprehensive income of associates and joint ventures accounted for using equity method that will be reclassified to profit or loss	0	0
Foreign currency translation [abstract]
Gains (losses) on exchange differences on translation of foreign operations	0	0
Total other comprehensive income (loss), foreign currency translation	0	0
Cash flow hedges [abstract]
Gains (losses) on cash flow hedges, net	0	0
Total other comprehensive income (loss), cash flow hedges	0	0
Available-for-sale financial assets [abstract]
Gains (losses) on remeasuring available-for-sale financial assets	-2,163	140
Total other comprehensive income (loss), available-for-sale financial assets	-2,163	140
Total other comprehensive income (loss), that will be reclassified to profit or loss	-2,163	140
Total other comprehensive income (loss)	-2,163	140
Total comprehensive income (loss) for period	51	-20,736
Total comprehensive income (loss) attributable to [abstract]
Total comprehensive income (loss), attributable to saudi shareholders of company	50.4798	-19,842.2171
Total comprehensive income (loss), attributable to non-saudi shareholders of company	0.5202	-893.7829
Total comprehensive income (loss), attributable to non-controlling interests	0	0

Start Date	2020-01-01	2019-01-01
End Date	2020-03-31	2019-03-31
Statement of cash flows, indirect method [abstract]
Statement of cash flows, insurance/ takaful operations [abstract]
Cash flows from (used in) operating activities, insurance/ takaful operations [abstract]
Net result for period from insurance/ takaful operations after shareholders appropriation	119	0
Adjustments to reconcile net income to net cash from insurance/ takaful operations after shareholders appropriation
Adjustments for depreciation, insurance/ takaful operations cash flow	386	366
Adjustments for employees end of service benefits	575	549
Adjustments for allowance for doubtful receivables	-993	-75
Total adjustments to reconcile net income to net cash from insurance/ takaful operations after shareholders appropriation	-32	840
Changes in operating assets and liabilities [abstract]
Adjustments for decrease (increase) in premium receivables, net	-57,731	-50,936
Adjustments for decrease (increase) in prepayments and other assets	-4,385	-2,573
Adjustments for increase (decrease) in outstanding claims including IBNR	3,959	11,834
Adjustments for increase (decrease) in reinsurers/ retakaful balance payable	-4,746	-14,146
Adjustments for increase (decrease) in accrued expenses and other liabilities	17,040	7,118
Adjustments for increase (decrease) in accrued commission income	92	9
Adjustments for decrease (increase) in reinsurers/ retakaful share of outstanding claims, net	76	1,638
Adjustments for decrease (increase) in deferred policy acquisition costs	-4,296	-4,719
Adjustments for decrease (increase) in due from shareholders operations	11,017	-22,004
Adjustments for movement in gross unearned premiums/ contributions	40,319	50,741
Adjustments for reinsurance/ retakaful share of unearned premiums/ contributions	237	7,105
Adjustment for changes in other technical reserves	80	8,112
Adjustments for other changes in operating assets and liabilities, insurance/ takaful operations cash flow	-425	326
Total changes in operating assets and liabilities	1,237	-7,495
Net cash flows from (used in) insurance/ takaful operations	1,324	-6,655
Other inflows (outflows) of cash classified as operating activities, insurance/ takaful operations cash flow	0	0
Net cash flows from (used in) operating activities, insurance/ takaful operations	1,324	-6,655
Cash flows from (used in) investing activities, insurance/ takaful operations [abstract]
Purchase of property and equipment, insurance/ takaful operations cash flow	961	531
Net cash flows from (used in) investing activities, insurance/ takaful operations	-961	-531
Cash flows from (used in) financing activities, insurance/ takaful operations [abstract]
Adjustments for decrease (increase) in due from shareholders operations	0	0
Net cash flows from (used in) financing activities, insurance/ takaful operations	0	0
Increase (decrease) in cash and cash equivalents before effect of exchange rate changes	363	-7,186
Effect of exchange rate changes on cash and cash equivalents	0	0
Net increase (decrease) in cash and cash equivalents	363	-7,186
Cash and cash equivalents at beginning of period	21,230	25,935
Cash and cash equivalents at end of period	21,593	18,749
Non-cash supplemental information, insurance/ takaful operations [abstract]
Operational cash flows from interest and dividends [abstract]
Interest paid, insurance/ takaful operations	0	0
Interest received, insurance/ takaful operations	0	31
Dividend received, insurance/ takaful operations	0	0

Start Date	2020-01-01	2019-01-01
End Date	2020-03-31	2019-03-31
Statement of cash flows, indirect method [abstract]
Statement of cash flows [abstract]
Cash flows from (used in) operating activities [abstract]
Net profit (loss) for period [abstract]
Income (loss) from continuing operations before zakat and income tax	2,467	-20,781
Profit (loss) from discontinued operations before zakat and income tax	0	0
Net profit (loss) for period (before zakat expenses and income tax)	2,467	-20,781
Adjustments to reconcile profit (loss) [abstract]
Adjustments for amortisation of premium (accretion of discounts) on investments	-101
Total adjustments to reconcile profit (loss)	-101
Changes in operating assets and liabilities [abstract]
Adjustments for increase (decrease) in accrued expenses and other liabilities, shareholders cash flow	313	-2,733
Adjustments for increase (decrease) in amount due to related parties, shareholders cash flow	-11,017	22,004
Adjustments for decrease (increase) in prepayments and other assets, shareholders assets	335	-302
Total changes in operating assets and liabilities	-10,369	18,969
Net cash flows from (used in) operations	-8,003	-1,812
Net cash flows from (used in) operating activities	-8,003	-1,812
Cash flows from (used in) investing activities [abstract]
Purchase of available-for-sale investments	1,374	1,164
Purchase of held-to-maturity investments		3,118
Purchase of term deposits investments	0	718
Net cash flows from (used in) investing activities	-1,374	-5,000
Cash flows from (used in) financing activities [abstract]
Proceeds from issuing shares	0	100,000
Net cash flows from (used in) financing activities	0	100,000
Increase (decrease) in cash and cash equivalents before effect of exchange rate changes	-9,377	93,188
Effect of exchange rate changes on cash and cash equivalents	0	0
Net increase (decrease) in cash and cash equivalents	-9,377	93,188
Cash and cash equivalents at beginning of period	23,285	13,289
Cash and cash equivalents at end of period	13,908	106,477

[400100] Notes forming part of accounts

English [member]

Note No.

Start Date

2020-01-01

End Date

2020-03-31

Notes forming part of accounts [line items]

Disclosure of notes and other explanatory information [text block]

Disclosure of general information about reporting entity [abstract]

Disclosure of general information about reporting entity [text block]

1	ORGANIZATION AND PRINCIPAL ACTIVITIES

Amana Cooperative Insurance Company (the “Company”) is a Saudi joint stock company established in Riyadh, Kingdom of Saudi Arabia by Royal Decree Number M/35 dated Jumada Al-Akher 3, 1431 H (corresponding to May 17, 2010), and registered in the Kingdom of Saudi Arabia under Commercial Registration No. 1010288711 dated Jumada Al-Akher 10, 1431 H (corresponding to May 24, 2010). The Company’s head office is at Salah-uddin Al-Ayubi Street P.O. Box 27986, Riyadh 11427, Kingdom of Saudi Arabia.






The objective of the Company is to engage in providing insurance services in accordance with its Articles of Association and By-laws and the applicable regulations in the Kingdom of Saudi Arabia.


On 31 July 2003, corresponding to 2 Jumada II 1424H, the Law on the Supervision of Cooperative Insurance Companies (“Insurance Law”) was promulgated by Royal Decree Number (M/32). During March 2008, the Saudi Arabian Monetary Authority (“SAMA”), as the principal authority responsible for the application and administration of the Insurance Law and its Implementing Regulations, granted the Company a license to transact insurance activities in the Kingdom of Saudi Arabia.





It was approved to update the Company’s by-laws to comply with the new companies’ regulations, issued by royal decree no.m/3 on 28/01/1437 H and this is as per the extraordinary general assembly meeting on 23/09/1438 H, corresponding June 18, 2017.

Disclosure of basis of preparation of financial statements [text block]

BASIS OF PREPARATION

(a)

Basis of presentation and measurement

The interim condensed interim financial information (interim condensed financial statements) of the Company as at and for the period ended 31 March 2020 have been prepared in accordance with International Accounting Standard 34 “Interim Financial Reporting” (IAS 34) as endorsed in Kingdom of Saudi Arabia and other standards and pronouncements issued by the Saudi Organization of Certified Public Accountants (“SOCPA”).

Previously, interim condensed financial statements for the three months period ended 31 March 2019 and annual financial statements for the year ended 31 December 2018 were prepared in accordance with IFRS as modified by SAMA for the accounting of zakat and income tax’, which requires, adoption of all IFRSs as issued by the International Accounting Standards Board (“IASB”) except for the application of International Accounting Standard (IAS) 12 - “Income Taxes” and IFRIC 21 - “Levies” so far as these relate to zakat and income tax. As per Circular no. 2019/23099 dated 26 shaban 1440H, (corresponding to 1 May 2019) SAMA instructed the Insurance Companies in the Kingdom of Saudi Arabia to account for the zakat and income taxes in the statement of income. This aligns with the IFRSs and its interpretations as issued by the International Accounting Standards Board (“IASB”). Accordingly, the Company changed its accounting treatment for zakat and income tax by retrospectively adjusting the impact in line with International Accounting Standard 8 - "Accounting Policies Changes in Accounting Estimates and Errors". The effects of the afore-said change are disclosed in note 4(a) and 20 to the interim condensed financial statements.

The interim condensed financial statements have been prepared under the going concern basis and the historical cost basis except for the measurement at fair value of “available-for-sale investments” and employees end-of-service benefits at present value.

BASIS OF PREPARATION (CONTINUED)

(a)

Basis of presentation and measurement (continued)

The Company presents its interim condensed statement of financial position in order of liquidity. As required by the Saudi Arabian Insurance Regulations, the Company maintains separate books of accounts for Insurance Operations and Shareholders’ Operations and presents the interim condensed financial statements accordingly (note 19). Assets, liabilities, revenues and expenses clearly attributable to either activity are recorded in the respective accounts. The basis of allocation of expenses from joint operations is determined and approved by the management and the Board of Directors.

The interim condensed statements of financial position, income, other comprehensive income and cash flows of the insurance operations and shareholders operations which are presented in note 19 of these interim condensed financial statements have been provided as supplementary interim condensed financial information to comply with the requirements of the guidelines issued by SAMA implementing regulations and is not required under IFRSs. SAMA implementing regulations requires the clear segregation of the assets, liabilities, income and expenses of the insurance operations and the shareholders operations. Accordingly, the interim condensed statement of financial position, interim condensed statement of income, interim condensed statement of comprehensive income and interim condensed statement of cash flows prepared for the insurance operations and shareholders operations as referred to above, reflect only the assets, liabilities, income, expenses and comprehensive gains or losses of the respective operations.

In preparing the Company-level financial statements in compliance with IFRSs, the balances and transactions of the insurance operations are amalgamated and combined with those of the shareholders’ operations. Inter-operation balances and transactions are eliminated in full during amalgamation. The accounting policies adopted for the insurance operations and shareholders operations are uniform for like transactions and events in similar circumstances.

The interim condensed financial statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Company’s annual financial statements as at 31 December 2019.

(b)

Functional and presentation currency

The interim condensed financial statements have been prepared in Saudi Arabian Riyals (SR), which is also the functional currency of the Company. All financial information presented in SR has been rounded off to the nearest thousand, unless otherwise stated.

(c)

Critical accounting judgments, estimates and assumptions

The preparation of interim condensed financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

In preparing these interim condensed financial statements, the significant judgments made by management in applying the Company's accounting policies and the key sources of estimation uncertainty including the risk management policies were the same as those that applied to the annual financial statements as at and for the year ended 31 December 2019.

BASIS OF PREPARATION (CONTINUED)

(c)

Critical accounting judgments, estimates and assumptions (continued)

Going concern

The accumulated losses of the Company as at 31 March 2020 are 34.77% (31 December 2019: 35.69%) of the share capital. To improve financial position, the Company has increased its business as compared to corresponding quarter of the last year. Moreover, the Company has put together a two-pillar plan under which the growth in topline is planned along with a firm control on expenses and has prepared a comprehensive business plan approved by the Board of Directors of the Company. Based on above the management is satisfied that it will be able to continue as a going concern in the foreseeable future.

Impact of COVID-19 on the medical technical reserves and financial assets

On 11 March 2020, the World Health Organisation (“WHO”) declared the Coronavirus (“COVID-19”) outbreak as a pandemic in recognition of its rapid spread across the globe. This outbreak has also affected the GCC region including the Kingdom of Saudi Arabia. Governments all over the world took steps to contain the spread of the virus. Saudi Arabia in particular has implemented closure of borders, issued social distancing guidelines and enforced country wide lockdowns and curfews. This necessitated the Company’s management to revisit its significant judgments in applying the Company’s accounting policies and the methods of computation and the key sources of estimation applied to the annual financial statements for the year ended 31 December 2019. Whilst it is challenging now, to predict the full extent and duration of its business and economic impact, the Company’s management carried out a preliminary assessment on the overall Company’s operations and business aspects including factors like dealing with customers and service providers, the health and safety of its employees and the wider community while it is operating, processing claims and dealing with customers etc., concluded that, as of the reporting date of the interim condensed financial statements, no significant changes are required to the judgements and key estimates. However, in view of the current uncertainties, any future change in the assumptions and estimates could result in outcomes that could require a material adjustment to the carrying amount of the asset or liability affected in the future periods. As the situation is rapidly evolving and the future remains uncertain, the management continue to assess the impact based on prospective developments.

Medical technical reserves

Notwithstanding these challenges, management believes that the technical reserves on medical line of business are likely to remain largely unaffected, if not reduced, as the insurance industry has been facilitated by the Government through bearing all costs associated with COVID-19 virus. Moreover, there is a general decrease in trend in medical claims which are of routine nature. Based on these factors, the Company's management believes that the COVID-19 pandemic has had no material effects on Company's reported insurance operations results for the quarter ended 31 March 2020. The Company's management continues to monitor the situation closely.

BASIS OF PREPARATION (CONTINUED)

(c)

Critical accounting judgments, estimates and assumptions (continued)

Other financial assets

The Company has performed an assessment in accordance with its accounting policy due to COVID-19 pandemic to determine whether there is objective evidence that a financial asset or group of financial assets are impaired. These include factors such as, significant financial difficulties of issuer or debtor, default or delinquency in payments, probability that the issuer or debtor will enter bankruptcy or other financial reorganization, etc. In case of equities, the Company has performed an assessment to determine whether there is a significant decline in the fair value of available for sale financial assets below their cost. Based on these assessments, the Company believes that the COVID-19 pandemic has had no material effects impact with respect to the factors mentioned above on the Company's reported results for the quarter ended 31 March 2020. The Company's management continues to monitor the situation closely.

Disclosure of accounting framework used in preparation of financial statements [text block]

IMPACT OF COVID-19 ON RISK MANAGEMENT POLICIES AND PROCEDURES

Credit risk management

The Company has strengthened its credit risk management policies to address the fast changing and evolving risks posed by the current circumstances. These include review of credit concentrations at granular economic sector, region, counterparty level and take appropriate action where required. Based on the review, the Company has identified the following sectors being impacted significantly by the COVID-19 pandemic and lower oil prices:

- Foods

- Airlines

- Freight companies

- Hotels

- Retail

- Construction

- Entertainment

- Tourism

Liquidity Risk

The Company is aware of the need to keep a close focus on liquidity management during this period and has enhanced its monitoring of current liquidity needs as well as the pandemic in its entirety. The Company regularly reviews and updates the liquidity forecast based on the individual liquidity balance as well as the continued development of external economic factors.

SIGNIFICANT ACCOUNTING POLICIES AND NEW STANDARDS ISSUED BUT NOT YET EFFECTIVE

(a)

Significant accounting policies

The significant accounting policies adopted in the preparation of these interim condensed financial statements are consistent with those followed in the preparation of the Company's annual financial statements for the year ended 31 December 2019, except for:

Change in the accounting for zakat and income tax

As mentioned above in note 2(a), the basis of preparation has been changed for the three month period ended 31 March 2019 as a result of the issuance of latest instructions from SAMA dated 23 July 2019. Previously, zakat and income tax were recognized in the statement of changes in equity as per the SAMA circular no 381000074519 dated 11 April 2017. With the latest instructions issued by SAMA dated 23 July 2019, the zakat and income tax shall be recognized in the interim condensed statement of income.

The Company is subject to Zakat in accordance with the regulations of the General Authority of Zakat and Tax ("GAZT"). Zakat expense is charged to the profit or loss. Zakat is not accounted for as income tax and as such no deferred tax is calculated relating to zakat.

(b)

New standards issued but not yet effective

The standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Company's interim financial statements are disclosed below. The Company intends to adopt these standards, if applicable, when they become effective.

IFRS 9 Financial Instruments

IFRS 9, as issued, reflects the first phase of the IASB's work though the adoption date is subject to the recently issued Exposure Draft on the replacement of IAS 39 and applies to classification and measurement of financial assets and liabilities as defined in IAS 39. The standard was initially effective for annual periods beginning on or after 1 January 2013, but Amendments to IFRS 9 Mandatory Effective Date of IFRS 9 and Transition Disclosures, issued in December 2011, moved the mandatory effective date to 1 January 2015.

However, on 19 November 2013, the IASB issued IFRS 9 Financial Instruments (Hedge Accounting and amendments to IFRS 9) amending IFRS 9 to include the new general hedge accounting model. In its February 2014 meeting, the IASB decided that IFRS 9 would be mandatorily effective for annual reporting periods beginning on or after 1 January 2018 with an optional temporary exception to defer the application of IFRS 9 till 1 January 2022 for companies whose activities are predominantly connected with insurance. In line with other insurance companies in the Kingdom of Saudi Arabia, the Company deferred the application of IFRS 9 till 1 January 2023 to match with the adoption of IFRS 17.

4	SIGNIFICANT ACCOUNTING POLICIES AND NEW STANDARDS ISSUED BUT NOT YET EFFECTIVE (CONTINUED)


(b)	New standards issued but not yet effective (continued)

IFRS 17 Insurance Contracts

The IASB issued IFRS 17 in May 2017. IFRS 17 will be mandatorily effective for annual reporting periods beginning on or after 1 January 2023. Once effective, IFRS 17 replaces IFRS 4 Insurance Contracts that was issued in 2005. The overall objective of IFRS 17 is to provide a more useful and consistent accounting model for insurance contracts among entities issuing insurance contracts globally. The Company is in the process of assessing the impact of IFRS 17.

3, 4

Disclosure of notes forming part of accounts [abstract]

Disclosure of investments [text block]

8	INVESTMENTS

Investments are classified as follows:

		31 March 2020 (Unaudited)			31 December 2019 (Audited)
		Insurance operations*	Shareholders' operations**	Total	Insurance operations*	Shareholders' operations**	Total
		SR '000			SR '000

Available-for-sale investments		1,923	15,212	17,135	1,923	17,375		19,298

Held-to-maturity investments		-	48,741	48,741	-	48,640		48,640


		1,923	63,953	65,876	1,923	66,015		67,938

*This represents the share in Najm for Insurance Services Company measured at cost and the fair value was not materially different from its carrying value.


**Investments for shareholders’ operations comprised as follows:						31 March 2020 (Unaudited)	31 December 2019 (Audited)
						SR '000		SR '000

Available-for-sale investments - Listed shares and REIT Funds (Domestic)						15,212		17,375
Held-to-maturity investments - Debt instruments (Domestic) ***						43,678		43,587
Held-to-maturity investments - Debt instruments (International) ***						5,063		5,053

						63,953		66,015



								14
8	INVESTMENTS (CONTINUED)

***The investment represents sukuks earning average profit at a rate of 3.45% per annum (2019: 3.45% per annum) having maturities upto 20 April 2027. The fair value of the Held-to-Maturity investments as at 31 March 2020 was not different from its carrying value.



The movements in available-for-sale investments for shareholders’ operations are as follows:

						31 March 2020 (Unaudited)	31 December 2019 (Audited)
						SR '000		SR '000

Opening balance						17,375		6,548
Additions						-		9,212
Change in fair value of available-for-sale investments						(2,163)		2,951
Transferred from fair value reserve to income for the year						-		(8)
Disposals at cost						-		(1,328)

Closing balance						15,212		17,375

The movements in held-to-maturity investments for shareholders’ operations are as follows:

Opening balance						48,640		47,172
Amortization for the period / year						101		1,468

Closing balance						48,741		48,640

There was no movement in the investments pertaining to insurance operations.

Disclosure of premiums/ contributions and insurance/ reinsurance or takaful/ retakaful balance receivables [text block]

7	PREMIUMS AND REINSURERS' RECEIVABLE - NET

		Note	31 March 2020 (Unaudited)	31 December 2019 (Audited)
Receivables comprise of the amounts due from the following:			SR '000		SR '000

Policyholders			13,871		30,200
Brokers and agents			83,522		39,761
Related parties		17	21,337		1,211
Receivables from reinsurers			45,498		35,325
			164,228		106,497

Less: provision for doubtful receivables			(25,945)		(26,938)

Premiums and reinsurers’ receivable – net			138,283		79,559

The movement in the provision for doubtful receivables is as follows:

Beginning balance			26,938		24,415
(Reversal) / charge made during the period / year			(993)		2,523
Ending balance			25,945		26,938

Disclosure of cash and cash equivalents [text block]

5	CASH AND CASH EQUIVALENTS

		31 March 2020 (Unaudited)			31 December 2019 (Audited)
		Insurance operations	Shareholders' operations	Total	Insurance operations	Shareholders' operations	Total
		SR '000			SR '000

Cash at bank		21,593	13,908	35,501	21,230	23,285		44,515
		21,593	13,908	35,501	21,230	23,285		44,515

Both bank balances are placed with counterparties with sound credit ratings under Standard and Poor’s and Moody’s ratings methodology.


The carrying amounts disclosed above reasonably approximate their fair values at the reporting date.

6	DEPOSITS

(a)	Short term deposits

Short term deposits are placed with local banks with an original maturity of more than three months from the date of acquisition and earning profit at an average rate 2.6% per annum (31 December 2019: 3.1% per annum). The carrying amounts of short term deposits reasonably approximate their fair values at the reporting date.



(b)	Long term deposit

Long-term deposit represents murabaha deposit having maturity of more than one year from the date of acquisition earning profit at a rate of 5.35% per annum (31 December 2019: 5.35% per annum) having maturities upto 16 November 2021. The carrying amounts of the deposits reasonably approximate their fair values at the reporting date.




Both short term and long term deposits are placed with counterparties with sound credit ratings under Standard and Poor’s and Moody’s ratings methodology.

5, 6

Disclosure of statutory deposit [text block]

14	STATUTORY DEPOSIT

Statutory deposit represents 15% of the paid up capital of the Company which is maintained with local bank designated by SAMA in accordance with the Cooperative Insurance Companies Control Law for insurance companies. This statutory deposit cannot be withdrawn without the consent of SAMA.



Accrued interest on the statutory deposit amounting to SR 2.74 million (31 December 2019: SR 2.58 million) has been presented in the interim condensed statement of financial position.

Disclosure of gross unearned premiums/ contributions [text block]

10	TECHNICAL RESERVES

(a)	Net Outstanding Claims and Reserves					31 March 2020 (Unaudited)	31 December 2019 (Audited)
						SR '000		SR '000

Outstanding claims						48,130		51,474
Claims incurred but not reported						35,659		28,356
Premium deficiency reserve						15,396		15,420
Other technical reserves						11,044		10,940

						110,229		106,190
Less:
Reinsurers’ share of outstanding claims						(16,629)		(15,641)
Reinsurers’ share of claims incurred but not reported						(2,685)		(3,749)

						(19,314)		(19,390)

Net outstanding claims and other reserves						90,915		86,800

								16
10	TECHNICAL RESERVES (CONTINUED)

(b)	Movement in unearned premiums	31 March 2020 (Unaudited)			31 December 2019 (Audited)
		Gross	Reinsurance	Net	Gross	Reinsurance		Net
		SR '000			SR '000

Opening balance		100,911	(4,866)	96,045	65,334	(17,189)		48,145
Premiums written during the period / year		103,397	(3,459)	99,938	248,054	(10,461)		237,593

Excess of loss expense		-	(2,347)	(2,347)	-	(6,023)		(6,023)
Premiums earned during the period / year		(63,078)	6,043	(57,035)	(212,477)	28,807		(183,670)

Closing balance		141,230	(4,629)	136,601	100,911	(4,866)		96,045

(c)	Unearned reinsurance commission					31 March 2020 (Unaudited)	31 December 2019 (Audited)
						SR '000		SR '000
Opening balance						1,057		884
Reinsurance commission received during the period / year						844		2,148
Reinsurance commission earned during the period / year						(752)		(1,975)

Closing balance						1,149		1,057

(d)	Movement in deferred policy acquisition costs

Opening balance						8,328		5,396
Incurred during the period / year						9,998		20,442
Amortized during the period / year						(5,702)		(17,510)

Closing balance						12,624		8,328

Disclosure of zakat [text block]

11	ZAKAT PAYABLE

Opening balance		2,859	9,516

Charge for the peiod / year		253	797
Charge for prior periods / year		-	8,744

		253	9,541
Paid during the period / year		-	(16,198)

Closing balance		3,112	2,859

The Company has filed its zakat returns to General Authority for Zakat and Tax ("GAZT") till the year 2018. All the assessments upto the year 2016 have been duly settled with GAZT and there are no assessments for the year 2017 onwards. Subsequent to the period end, the Company has also received assessments in respect of value added taxes ("VAT") for the months of January 2018, December 2018 and December 2019 amounting to SR 2.994 million, for which the Company is in the process of filing objection with the relevant authorities and expects favorable outcome on the basis of opinion of its advisors.

Disclosure of related party transactions [text block]

17	RELATED PARTY TRANSACTIONS AND BALANCES

Related parties represent major shareholders, directors and key management personnel of the Company, and companies of which they are principal owners and any other entities controlled, jointly controlled or significantly influenced by them. Pricing policies and terms of these transactions are approved by the Company’s management and Board of Directors. The following are the details of the major related party transactions during the year and the related balances:





DUE FROM RELATED PARTIES		Amounts of transactions		Balances as at
		31 March 2020 (Unaudited)	31 March 2019 (Unaudited)	31 March 2020 (Unaudited)	31 December 2019 (Audited)
		SR '000	SR '000	SR '000	SR '000
Entities controlled, jointly controlled or significantly influenced by related parties


El Seif companies group
- Insurance premium written		30,049	31,298	20,881	755
- Paid claims		5,204	521	-	-
		35,253	31,819	20,881	755

El Tukhy companies group
- Insurance premium written		-	7	456	456
- Paid claims		-	37	-	-
		-	44	456	456
Total		35,253	31,863	21,337	1,211


Less: provision for doubtful receivables				(810)	(408)
Due from related parties, net				20,527	803



					19
17	RELATED PARTY TRANSACTIONS AND BALANCES (CONTINUED)

The movement in the provision for doubtful receivables regarding related parties was as following:

				31 March 2020 (Unaudited)	31 December 2019 (Audited)
				SR '000	SR '000

Opening balance				408	535
Charge / (reversal) during the period / year				402	(127)
Closing balance				810	408

DUE TO RELATED PARTIES
		Amounts of transactions		Balances as at
		31 March 2020 (Unaudited)	31 March 2019 (Unaudited)	31 March 2020 (Unaudited)	31 December 2019 (Audited)
		SR '000	SR '000	SR '000	SR '000

Board of Directors & related committee
Bonus and other allowances		363	356	1,761	1,451

Globe-Med (Group entity)
Administration fees for handling medical claims and others		3,604	3,581	3,604	2,325

		3,967	3,937	5,365	3,776

Key management personnel are persons having authority and responsibility for planning, directing and controlling the activities of the Company, directly or indirectly and comprise top management executives including the Chief Executive Officer, and the Chief Financial Officer of the Company.



The compensation of key management personnel during the period is as follows:

				31 March 2020 (Unaudited)	31 March 2019 (Unaudited)
				SR '000	SR '000

Salaries and other allowances				1,009	1,156
End of service indemnities				42	48
				1,051	1,204

Disclosure of entity's operating segments [text block]

18	SEGMENT INFORMATION

Consistent with the Company’s internal reporting process, insurance operating segments have been approved by Management in respect of the Company’s activities, assets and liabilities as stated below.


Segment results do not include general and administrative expenses, allowance for doubtful debts. Accordingly, they are included in unallocated expenses or income.

18	SEGMENT INFORMATION (CONTINUED)

Segment assets do not include insurance operations’ property and equipment, investments, prepayments and other assets, premiums and reinsurance balances receivable, cash and cash equivalents and time deposits. Accordingly they are included in unallocated assets. Segment liabilities do not include employees’ end-of-service benefits, and reinsurance balances payable, accrued expenses and other liabilities and accrued surplus to policyholders. Accordingly they are included in unallocated liabilities.




		For the three month period ended 31 March 2020 (Unaudited)
		SR '000
		Medical		Motor		Property & casualty	Unallocated	Total - Insurance operations	Shareholders' operations	Total

Operating segment
Revenues
Gross premiums written
- Corporate		52,519		5,387		5,708	-	63,614	-	63,614
- Medium		14,751		895		116	-	15,762	-	15,762
- Small		7,705		193		179	-	8,077	-	8,077
- Very small		15,521		23		14	-	15,558	-	15,558
- Individual		-		386			-	386	-	386
		90,496		6,884		6,017	-	103,397	-	103,397
Reinsurance premiums ceded
- Local		-		-		(66)	-	(66)	-	(66)
- International (includes premium ceded through local broker)		-		-		(3,393)	-	(3,393)	-	(3,393)

Excess of loss expenses		(932)		(204)		(1,211)	-	(2,347)	-	(2,347)

Net premiums written		89,564		6,680		1,347	-	97,591	-	97,591

Changes in gross unearned premiums - net		(34,248)		(4,035)		(2,273)	-	(40,556)	-	(40,556)
Net premiums earned		55,316		2,645		(926)	-	57,035	-	57,035
Reinsurance commissions		-		-		752	-	752	-	752
Other underwriting income		2,823		512		(1)	-	3,334	-	3,334

Total revenues		58,139		3,157		(175)	-	61,121	-	61,121
										21
18	SEGMENT INFORMATION (CONTINUED)

		For the three month period ended 31 March 2020 (Unaudited)
		SR '000
		Medical		Motor		Property & casualty	Unallocated	Total - Insurance operations	Shareholders' operations	Total

Operating segment

Underwriting costs and expenses
Gross claims paid		(48,255)		(1,210)		(155)	-	(49,620)	-	(49,620)
Reinsurers' share of claims paid		12,695		121		130	-	12,946	-	12,946

Net claims paid		(35,560)		(1,089)		(25)	-	(36,674)	-	(36,674)
Changes in outstanding claims		4,403		(574)		(485)	-	3,344	-	3,344
Changes in reinsurance share of outstanding claims		516		5		467	-	988	-	988
Changes in claims incurred but not reported		(7,368)		(44)		109	-	(7,303)	-	(7,303)
Changes in reinsurance share of claims incurred		(783)		(132)		(149)	-	(1,064)	-	(1,064)
but not reported

Net claims incurred		(38,792)		(1,834)		(83)	-	(40,709)	-	(40,709)
Changes in premiums deficiency reserve		(177)		103		98	-	24	-	24
Changes in other technical reserves		(15)		(15)		(74)	-	(104)	-	(104)
Policy acquisition costs		(4,954)		(286)		(462)	-	(5,702)	-	(5,702)
Inspection and supervision fees		(3,235)		(94)		(20)	-	(3,349)	-	(3,349)

Total underwriting costs and expenses		(47,173)		(2,126)		(541)	-	(49,840)	-	(49,840)

Net underwriting income		10,966		1,031		(716)	-	11,281	-	11,281






										22
18	SEGMENT INFORMATION (CONTINUED)

		For the three month period ended 31 March 2020 (Unaudited)
		SR '000
		Medical		Motor		Property & casualty	Unallocated	Total - Insurance operations	Shareholders' operations	Total

Operating segment
Other operating (expenses) / income
Reversal of provision for doubtful debts		-		-		-	993	993	-	993
General and administrative expenses		(8,835)		(672)		(1,580)	-	(11,087)	(359)	(11,446)
Dividends and investment income		-		-		-	-	-	1,758	1,758
Realized loss from sale of available-for-sale		-		-		-	-	-	-	-
Investments
Total other operating (expenses) / income		(8,835)		(672)		(1,580)	993	(10,094)	1,399	(8,695)
Total (loss) / income before zakat		2,131		359		(2,296)	993	1,187	1,399	2,586
Zakat charge		-		-		-	-	-	(253)	(253)

Net income / (loss) after zakat		2,131		359		(2,296)	993	1,187	1,146	2,333
Total income for the period attributed to the insurance operations		-		-		-	(119)	(119)	-	(119)

Surplus / (deficit) transferred to shareholders		(2,131)		(359)		2,296	(874)	(1,068)	1,068	-

Net income / (loss) attributable to the shareholders after zakat
		-		-		-	-	-	2,214	2,214








										23
18	SEGMENT INFORMATION (CONTINUED)

		For the three month period ended 31 March 2019 (Unaudited)
		SR '000
		Medical		Motor		Property & casualty	Unallocated	Total - Insurance operations	Shareholders' operations	Total

Operating segment
Revenues
Gross premiums written
- Corporate		54,052		4,034		2,161	-	60,247	-	60,247
- Medium		13,913		763		122	-	14,798	-	14,798
- Small		4,741		336		70	-	5,147	-	5,147
- Very small		16,374		-		6	-	16,380	-	16,380
- Individual		-		179		-	-	179	-	179
Gross premiums written		89,080		5,312		2,359	-	96,751	-	96,751
Reinsurance premiums ceded
- Local		-		-	-	(280)	-	(280)	-	(280)
- International (includes premium ceded through local broker)		(987)	-	-		(1,034)	-	(2,021)	-	(2,021)

Excess of loss expenses		(960)		(311)		(79)	-	(1,350)	-	(1,350)

Net premiums written		87,133		5,001		966	-	93,100	-	93,100

Changes in gross unearned premiums - net		(55,543)		(2,211)		(92)	-	(57,846)	-	(57,846)
Net premiums earned		31,590		2,790		874	-	35,254	-	35,254
Reinsurance commissions		-		-		360	-	360	-	360
Other underwriting income		-		373		201	-	574	-	574

Total revenues		31,590		3,163		1,435	-	36,188	-	36,188



										24
18	SEGMENT INFORMATION (CONTINUED)

		For the three month period ended 31 March 2019 (Unaudited)
		SR '000
		Medical		Motor		Property & casualty	Unallocated	Total - Insurance operations	Shareholders' operations	Total

Operating segment
Underwriting costs and expenses
Gross claims paid		(27,555)		(3,078)		25	-	(30,608)	-	(30,608)
Reinsurers' share of claims paid		11,686		507		(31)	-	12,162	-	12,162

Net claims paid		(15,869)		(2,571)		(6)	-	(18,446)	-	(18,446)
Changes in outstanding claims		1,924		987		115	-	3,026	-	3,026
Changes in reinsurance share of outstanding claims		192		(595)		(68)		(471)	-	(471)
Changes in claims incurred but not reported		(16,456)		621		974	-	(14,861)	-	(14,861)
Changes in reinsurance share of claims incurred		1,436		(1,717)		(887)	-	(1,168)	-	(1,168)
but not reported
Net claims incurred		(28,773)		(3,275)		128	-	(31,920)	-	(31,920)
Changes in premiums deficiency reserve		(8,078)		(388)		378	-	(8,088)	-	(8,088)
Changes in other technical reserves		-		47		(71)	-	(24)	-	(24)
Policy acquisition costs		(3,524)		(253)		(160)	-	(3,937)	-	(3,937)
Inspection and supervision fees		(2,534)		(186)		(64)	-	(2,784)	-	(2,784)
Total underwriting costs and expenses		(42,909)		(4,055)		211	-	(46,753)	-	(46,753)
Net underwriting (loss) / income		(11,319)		(892)		1,646	-	(10,565)	-	(10,565)






										25
18	SEGMENT INFORMATION (CONTINUED)

		For the three month period ended 31 March 2019 (Unaudited)
		SR '000
		Medical		Motor		Property & casualty	Unallocated	Total - Insurance operations	Shareholders' operations	Total

Operating segment
Other operating (expenses) / income
Reversal of provision for doubtful debts		-		-		-	75	75	-	75
General and administrative expenses		-		-		-	(11,463)	(11,463)	(444)	(11,907)
Dividends and investment income		-		-		-	31	31	1,577	1,608
Realized loss from sale of available-for-sale		-		-		-	-	-	8	8
Investments
Total other operating (expenses) / income		-		-		-	(11,357)	(11,357)	1,141	(10,216)
Total (loss) / income before zakat		(11,319)		(892)		1,646	(11,357)	(21,922)	1,141	(20,781)
Zakat charge		-		-		-	-	-	(95)	(95)

Net (loss) / income after zakat		(11,319)		(892)		1,646	(11,357)	(21,922)	1,046	(20,876)
(Deficit) / surplus transferred to shareholders		11,319		892		(1,646)	11,357	21,922	(21,922)	-

Net income / (loss) attributable to the shareholders after zakat
		-		-		-	-	-	(20,876)	(20,876)









										26
18	SEGMENT INFORMATION (CONTINUED)

		As at 31 March 2020 (Unaudited)
		SR '000
		Medical		Motor		Property & casualty	Unallocated	Total - Insurance operations	Shareholders' operations	Total

Operating segment
Assets
Cash and cash equivalents		-		-		-	21,593	21,593	13,908	35,501
Premiums and reinsurers' receivable - net		83,386		8,234		7,090	39,573	138,283	-	138,283
Reinsurers' share of unearned premiums		-		-		4,629	-	4,629	-	4,629
Reinsurers' share of outstanding claims		6,165		9,272		1,192	-	16,629	-	16,629
Reinsurers' share of claims incurred but not reported		977		132		1,576	-	2,685	-	2,685
Deferred policy acquisition costs		10,825		873		926	-	12,624	-	12,624
Investments		-		-		-	1,923	1,923	63,953	65,876
Unallocated assets		-		-		-	28,783	28,783	188,474	217,257
Total assets		101,353		18,511		15,413	91,872	227,149	266,335	493,484

Liabilities
Policyholders claims payable		-		-		-	331	331	-	331
Reinsurers' balances payable		-		-		-	8,230	8,230	-	8,230
Unearned premiums		125,146		7,860		8,224	-	141,230	-	141,230
Unearned reinsurance commission		-		-		1,149	-	1,149	-	1,149
Outstanding claims		26,045		20,750		1,335	-	48,130	-	48,130
Claims incurred but not reported		30,923		2,148		2,588	-	35,659	-	35,659
Premium deficiency reserve		13,740		1,656		-	-	15,396	-	15,396
Other technical reserves		9,988		572		484	-	11,044	-	11,044
Unallocated liabilities		-		-		-	66,817	66,817	8,592	75,409
Total liabilities		205,842		32,986		13,780	75,378	327,986	8,592	336,578

										27
18	SEGMENT INFORMATION (CONTINUED)
		As at 31 December 2019 (Audited)
		SR '000
		Medical		Motor		Property & casualty	Unallocated	Total - Insurance operations	Shareholders' operations	Total

Operating segment

Assets
Cash and cash equivalents		-		-		-	21,230	21,230	23,285	44,515
Premiums and reinsurers' receivable - net		39,433		4,194		1,516	34,416	79,559	-	79,559
Reinsurers' share of unearned premiums		-		-		4,866	-	4,866	-	4,866
Reinsurers' share of outstanding claims		5,649		9,267		725	-	15,641	-	15,641
Reinsurers' share of claims incurred but not reported		1,759		264		1,726	-	3,749	-	3,749
Deferred policy acquisition costs		7,321		341		666	-	8,328	-	8,328
Investments		-		-		-	1,923	1,923	66,015	67,938
Unallocated assets		-		-		-	23,823	23,823	187,268	211,091
Total assets		54,162		14,066		9,499	81,392	159,119	276,568	435,687

Liabilities
Policyholders claims payable		343		(1,287)		1,187	-	243	-	243
Reinsurers' balances payable		-		-		-	12,976	12,976	-	12,976
Unearned premiums		90,864		3,825		6,222	-	100,911	-	100,911
Unearned reinsurance commission		-		-		1,057	-	1,057	-	1,057
Outstanding claims		30,449		20,176		849	-	51,474	-	51,474
Claims incurred but not reported		23,825		2,661		1,870	-	28,356	-	28,356
Premium deficiency reserve		13,563		1,759		98	-	15,420	-	15,420
Other technical reserves		9,973		557		410	-	10,940	-	10,940
Unallocated liabilities		-		-		-	49,596	49,596	7,859	57,455
Total liabilities		169,017		27,691		11,693	62,572	270,973	7,859	278,832

Disclosure of capital management [text block]

16	CAPITAL MANAGEMENT

The Company manages its capital to ensure that it is able to continue as going concern and comply with the SAMA’s capital requirements while maximizing the return to stakeholders through the optimization of the debt and equity balance. The capital structure of the Company consists of equity attributable to shareholders comprising paid capital and accumulated deficit.




The Company maintains its capital as per guidelines laid out by SAMA in Article 66 table 3 and 4 of the Implementing Regulations detailing the solvency margin required to be maintained. According to the article, the Company shall maintain solvency margin equivalent to the highest of the following three methods as per SAMA Implementing Regulations:




-	Minimum Capital Requirement of SAR 100 million
-	Premium Solvency Margin
-	Claims Solvency Margin

In the opinion of the Board of Directors, the Company has fully complied with the externally imposed capital requirements during the reported financial period.

Disclosure of comparative figures [text block]

20	RESTATEMENT AND RECLASSIFICATION OF COMPARATIVE FIGURES

The change in the accounting treatment for zakat and income tax (as explained in note 4) has the following impact on the line items of the statements of income, statement of financial position and changes in shareholders' equity:



As at and for the three month period ended 31 March 2019:

Financial statement impacted		Account	Before the restatement for the three-month period ended 31 March 2019	Effect of restatement	As restated as at and for the three-month period ended 31 March 2019
			SR '000

Interim condensed statement of income		Zakat and income tax expenses	-	(95)	(95)
Interim condensed statement of changes in equity		Provision for Zakat and income tax (retained earnings)	(95)	95	-

Disclosure of board of director's approval of the financial statements [text block]

22	APPROVAL OF FINANCIAL STATEMENTS

The interim condensed financial statements have been approved by the Board of Directors on 11 June 2020 (corresponding to 19 Shawwal 1441H).

Disclosure of other notes relevant to understanding of financial statements [text block]

19	SUPPLEMENTARY INFORMATION

19.1	Interim condensed statement of financial position

		As at 31 March 2020 (Unaudited)			As at 31 December 2019 (Audited)
		Insurance Operations	Shareholders' Operations	Total	Insurance Operations	Shareholders' Operations	Total
		SR '000			SR '000

ASSETS
Cash and cash equivalents		21,593	13,908	35,501	21,230	23,285	44,515
Short term deposits		-	117,367	117,367	-	115,993	115,993
Premiums and reinsurers' receivable - net		138,283	-	138,283	79,559	-	79,559
Reinsurers' share of unearned premiums		4,629	-	4,629	4,866	-	4,866
Reinsurers' share of outstanding claims		16,629	-	16,629	15,641	-	15,641
Reinsurers' share of claims incurred but not reported		2,685	-	2,685	3,749	-	3,749
Deferred policy acquisition costs		12,624	-	12,624	8,328	-	8,328
Available-for-sale investments		1,923	15,212	17,135	1,923	17,375	19,298
Held-to-maturity investments		-	48,741	48,741	-	48,640	48,640
Due from shareholders' operations		100,298	-	100,298	111,315	-	111,315
Prepayments and other assets		21,722	2,363	24,085	17,337	2,698	20,035
Property and equipment		6,561	-	6,561	5,970	-	5,970
Intangible assets		500	-	500	516	-	516
Long term deposits		-	30,000	30,000	-	30,000	30,000
Statutory deposit		-	36,000	36,000	-	36,000	36,000
Accrued commission income on statutory deposit		-	2,744	2,744	-	2,577	2,577

TOTAL ASSETS		327,447	266,335	593,782	270,434	276,568	547,002

19	SUPPLEMENTARY INFORMATION (CONTINUED)

19.1	Interim condensed statement of financial position (continued)

		As at 31 March 2020 (Unaudited)			As at 31 December 2019 (Audited)
		Insurance Operations	Shareholders' Operations	Total	Insurance Operations	Shareholders' Operations	Total
		SR '000			SR '000

LIABILITIES
Policyholders claims payable		331	-	331	243	-	243
Accrued expenses and other liabilities		61,814	2,736	64,550	44,774	2,423	47,197
Reinsurance balances payable		8,230	-	8,230	12,976	-	12,976
Unearned premiums		141,230	-	141,230	100,911	-	100,911
Unearned reinsurance commission		1,149	-	1,149	1,057	-	1,057
Outstanding claims		48,130	-	48,130	51,474	-	51,474
Claims incurred but not reported		35,659	-	35,659	28,356	-	28,356
Premium deficiency reserve		15,396	-	15,396	15,420	-	15,420
Other technical reserve		11,044	-	11,044	10,940	-	10,940
Due to insurance operation		-	100,298	100,298	-	111,315	111,315
Employees' end-of-service benefits		4,105	-	4,105	4,043	-	4,043
Surplus distribution payable		898	-	898	779	-	779
Provision for zakat and income tax		-	3,112	3,112	-	2,859	2,859
Accrued commission income payable to SAMA		-	2,744	2,744	-	2,577	2,577
TOTAL LIABILITIES		327,986	108,890	436,876	270,973	119,174	390,147
EQUITY
Share capital		-	240,000	240,000	-	240,000	240,000
Accumulated losses		-	(83,452)	(83,452)	-	(85,666)	(85,666)
Actuarial loss on end-of-service benefits		(539)	-	(539)	(539)	-	(539)
Fair value reserve for available-for-sale investments		-	897	897	-	3,060	3,060

TOTAL EQUITY		(539)	157,445	156,906	(539)	157,394	156,855

TOTAL LIABILITIES AND EQUITY		327,447	266,335	593,782	270,434	276,568	547,002

19	SUPPLEMENTARY INFORMATION (CONTINUED)

19.2	Interim condensed statement of income
		For the three month period ended 31 March 2020 (Unaudited)			For the three month period ended 31 March 2019 (Unaudited)
		Insurance Operations	Shareholders' Operations	Total	Insurance Operations	Shareholders' Operations	Total
		SR '000			SR '000

REVENUES
Gross premiums written		103,397	-	103,397	96,751	-	96,751
Reinsurance premiums ceded
- Local		(66)	-	(66)	(280)	-	(280)
- Foreign		(3,393)	-	(3,393)	(2,021)	-	(2,021)
Excess of loss expenses		(2,347)	-	(2,347)	(1,350)	-	(1,350)

Net premiums written		97,591	-	97,591	93,100	-	93,100
Changes in unearned premiums		(40,556)	-	(40,556)	(57,846)	-	(57,846)

Net premiums earned		57,035	-	57,035	35,254	-	35,254
Reinsurance commissions		752	-	752	360	-	360
Other underwriting income		3,334	-	3,334	574	-	574

NET REVENUES		61,121	-	61,121	36,188	-	36,188

UNDERWRITING COSTS AND EXPENSES
Gross claims paid		(49,620)	-	(49,620)	(30,608)	-	(30,608)
Reinsurers' share of claims paid		12,946	-	12,946	12,162	-	12,162

Net claims paid		(36,674)	-	(36,674)	(18,446)	-	(18,446)
Changes in outstanding claims		3,344	-	3,344	3,026	-	3,026
Changes in reinsurers' share of outstanding claims		988	-	988	(471)	-	(471)
Changes in claims incurred but not reported		(7,303)	-	(7,303)	(14,861)	-	(14,861)
Changes in reinsurers' share of claims incurred but not reported		(1,064)	-	(1,064)	(1,168)	-	(1,168)

Net claims incurred		(40,709)	-	(40,709)	(31,920)	-	(31,920)

19	SUPPLEMENTARY INFORMATION (CONTINUED)

19.2	Interim condensed statement of income (continued)
		For the three month period ended 31 March 2020 (Unaudited)			For the three month period ended 31 March 2019 (Unaudited)
		Insurance Operations	Shareholders' Operations	Total	Insurance Operations	Shareholders' Operations	Total
		SR '000			SR '000

Changes in premiums deficiency reserve		24	-	24	(8,088)	-	(8,088)
Changes in other technical reserves		(104)	-	(104)	(24)	-	(24)
Policy acquisition costs		(5,702)	-	(5,702)	(3,937)	-	(3,937)
Inspection and supervision fees		(3,349)	-	(3,349)	(2,784)	-	(2,784)

TOTAL UNDERWRITING COSTS AND EXPENSES		(49,840)	-	(49,840)	(46,753)	-	(46,753)

NET UNDERWRITING INCOME / (LOSS)		11,281	-	11,281	(10,565)	-	(10,565)

OTHER OPERATING (EXPENSES) / INCOME
Reversal of provision for doubtful debts		993	-	993	75	-	75
General and administrative expenses		(11,087)	(359)	(11,446)	(11,463)	(444)	(11,907)
Dividends and investment income		-	1,758	1,758	31	1,577	1,608
Realized loss from sale of available-for-sale investments		-	-	-	-	8	8

TOTAL OTHER OPERATING (EXPENSES) / INCOME		(10,094)	1,399	(8,695)	(11,357)	1,141	(10,216)

Total income / (loss) before zakat		1,187	1,399	2,586	(21,922)	1,141	(20,781)
Zakat charge		-	(253)	(253)	-	(95)	(95)

Net income / (loss) after zakat		1,187	1,146	2,333	(21,922)	1,046	(20,876)
Total income for the period attributed to the insurance operations		(119)	-	(119)	-	-	-

Surplus / (deficit) transferred to shareholders		(1,068)	1,068	-	21,922	(21,922)	-

Net income / (loss) attributable to the shareholders after zakat		-	2,214	2,214	-	(20,876)	(20,876)

19	SUPPLEMENTARY INFORMATION (CONTINUED)

19.3	Interim condensed statement of comprehensive income
		For the three months period ended 31 March 2020 (Unaudited)			For the three months period ended 31 March 2019 (Unaudited)
		Insurance Operations	Shareholders' Operations	Total	Insurance Operations	Shareholders' Operations	Total
		SR '000			SR '000

Net income / (loss) after zakat		119	2,214	2,333	-	(20,876)	(20,876)

Other comprehensive income / (loss) :

Items that will not be reclassified to statement of income in subsequent years		-	-	-	-	-	-


Items that may be reclassified to statement of insurance operations' surplus in subsequent years


- Change in fair value of available-for-sale investments		-	(2,163)	(2,163)	-	140	140

Total comprehensive income / (loss) for the period		119	51	170	-	(20,736)	(20,736)

Total comprehensive income attributable to the insurance operations		119	-	119	-	-	-


Net comprehensive income / (loss) attributable to the shareholders
			51	51	-	(20,736)	(20,736)

19	SUPPLEMENTARY INFORMATION (CONTINUED)

19.4	Interim condensed statement of cash flows	For the three month period ended 31 March 2020 (Unaudited)			For the three month period ended 31 March 2019 (Unaudited)
		Insurance Operations	Shareholders' Operations	Total	Insurance Operations	Shareholders' Operations	Total
		SR '000			SR '000
CASH FLOWS FROM OPERATING ACTIVITIES
Total income / (loss) before zakat		119	2,467	2,586	-	(20,781)	(20,781)
Adjustments for non-cash items:
Depreciation and amortization		386	-	386	366	-	366
Reversal of provision for doubtful debts		(993)	-	(993)	(75)	-	(75)
Amortization of held-to-maturity investments		-	(101)	(101)	-	-	-
Provision for employees' end-of-service benefits		575	-	575	549	-	549
		87	2,366	2,453	840	(20,781)	(19,941)
Changes in operating assets and liabilities:
Premiums and reinsurers’ receivable		(57,731)	-	(57,731)	(50,936)	-	(50,936)
Reinsurers’ share of unearned premiums		237	-	237	7,105	-	7,105
Reinsurers’ share of outstanding claims		(988)	-	(988)	471	-	471
Reinsurers’ share of claims incurred but not reported		1,064	-	1,064	1,167	-	1,167
Deferred policy acquisition costs		(4,296)	-	(4,296)	(4,719)	-	(4,719)
Due from shareholders		11,017	-	11,017	(22,004)	-	(22,004)
Prepaid expenses and other assets		(4,385)	335	(4,050)	(2,573)	(302)	(2,875)
Policyholders claims payable		88	-	88	361	-	361
Accrued expenses and other liabilities		17,040	313	17,353	7,118	(2,733)	4,385
Reinsurers' balances payable		(4,746)	-	(4,746)	(14,146)	-	(14,146)
Unearned premiums		40,319	-	40,319	50,741	-	50,741
Unearned reinsurance commission		92	-	92	9	-	9
Outstanding claims		(3,344)	-	(3,344)	(3,027)	-	(3,027)
Claims incurred but not reported		7,303	-	7,303	14,861	-	14,861
Premium deficiency reserve		(24)	-	(24)	8,088	-	8,088
Other technical reserves		104	-	104	24	-	24
Due to insurance operation		-	(11,017)	(11,017)	-	22,004	22,004
		1,837	(8,003)	(6,166)	(6,620)	(1,812)	(8,432)


							34
Employees' end-of-service benefits paid		(513)	-	(513)	(35)	-	(35)
Net cash used in operating activities		1,324	(8,003)	(6,679)	(6,655)	(1,812)	(8,467)

CASH FLOWS FROM INVESTING ACTIVITIES
Short term deposits		-	(1,374)	(1,374)	-	(718)	(718)
Purchase of available-for-sale investments		-	-	-	-	(3,118)	(3,118)
Purchase of held-to-maturity investments		-	-	-	-	(1,164)	(1,164)
Purchase of property, equipment and intangibles		(961)	-	(961)	(531)	-	(531)
Net cash used in investing activities		(961)	(1,374)	(2,335)	(531)	(5,000)	(5,531)

CASH FLOWS FROM FINANCING ACTIVITY
Proceeds from issuance of capital		-	-	-	-	100,000	100,000
Net cash from financing activities		-	-	-	-	100,000	100,000
Net change in cash and cash equivalents		363	(9,377)	(9,014)	(7,186)	93,188	86,002

Cash and cash equivalents at the beginning of the period		21,230	23,285	44,515	25,935	13,289	39,224
Cash and cash equivalents at the end of the period		21,593	13,908	35,501	18,749	106,477	125,226

Supplemental non-cash information:

Changes in fair values of available-for-sale investments - net		-	(2,163)	(2,163)	-	140	140

[100010] Filing information	[200100] Independent auditors report	[300100] Statement of financial position, order of liquidity
[300200] Statement of insurance/ takaful operations, nature of expense	[300300] Statement of shareholders operations, nature of expense	[300400] Statement of other comprehensive income, before tax, insurance operations
[300500] Statement of other comprehensive income, before tax, shareholders operations	[300600] Statement of cash flows, indirect method, insurance operations	[300700] Statement of cash flows, indirect method, shareholders operations
[300800] Statement of changes in equity	[400100] Notes forming part of accounts